Tag Archives: payday loans

The Downward Spiral Caused by Online Payday Loans

Short-term and payday lenders have plagued low-income areas for years, but fortunately, state laws have made progress towards completely banning the practice. At least 14 states right now have effectively prohibited payday lenders from operating within state lines. However, for every local lender banned from a state, there are a dozen online lenders that have no boundaries. Online payday lenders have become internet predators, hunting as they please. They are able to operate without regard for state policy, and are facilitated by banks. Online payday loans are extremely easy to apply and qualify for, generally requiring little more than a name, employment history, and bank numbers. Payday lenders approve almost any application and deposit the money into the provided account number. Lenders are typically given permission to access the bank account in question as part of the deal. This allows them to automatically draft money out of the account on…
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The Dangers of Payday Loans

We’ve all had those days when payday can’t come soon enough. Things seem to be piling up and the pressure to pay bills becomes more and more powerful. Sometimes you may feel overwhelmed and looking for a way out of the vice grips, but you have to make sure you know the level of risk you may be taking by getting a payday loan. What is a Payday Loan? A payday loan is a short term loan for a smaller amount; usually less than $1000. Repayment of the loan is typically due in full on the next payday; hence the name. The dates of your payday must be disclosed to the lender so they know when to get their money back. Lenders are allowed to directly draft the repayment amount out of your account High fees and extremely high interest are added to the loan amount The Problem with Payday…
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